Deere Optimistic for 2023 Following Strong Fourth Quarter

Jordanne Waldschmidt Headshot
Updated Dec 6, 2022
Deere X-Tier Backhoe dumping dirt
John Deere

Deere Q4 2022 Highlights:

  • Fourth-quarter total net sales rise 40%
  • Construction and Forestry division net sales up 20%
  • Continued strong demand for farm and construction equipment
  • Forecast for 2023 calls for higher sales and net income of $8.0 to $8.5 billion

Posting a 19% jump in net sales and revenue for the full year, Deere & Company is predicting continued strong demand for farm and construction equipment in 2023.

While total net sales and revenue reached $52.58 billion for the year, net sales for equipment operations rose 21% to $47.92 billion in 2022.

Fourth-quarter net sales and revenue for the manufacturer soared 37% over the same period last year.  Deere reported a net income of $2.25 billion for the fourth quarter ended October 30, 2022, compared with a net income of $1.28 billion, for the same quarter a year ago.  

In construction and forestry equipment, Deere’s net sales for the fourth quarter hit $3.37 billion, a 20% increase over last year. Gains were primarily due to price realization and higher shipment volumes, partially offset by the negative effects of currency translation, increases in production costs and the impact of higher reserves on the remaining assets in Russia.

John Deere Q4 2022 Construction & Forestry Operating ProfitDeere & Company“Deere’s strong performance for both the fourth quarter and full year is a tribute to our dedicated team of employees, dealers, and suppliers throughout the world,” said John C. May, chairman and chief executive officer. “We’re proud of their extraordinary efforts to overcome supply-chain constraints, increase factory production, and deliver products to our customers.”

2023 Outlook

Looking ahead, Deere expects total net income for 2023 to be in the range of $8 billion to $8.5 billion.

Construction sales in the U.S. and Canada are expected to be relatively flat but steady, with Deere counting on infrastructure funding to offset declines in the residential sector.

[Related: 2023 Construction Market Forecast]

“Deere is looking forward to another strong year in 2023 based on positive farm fundamentals and fleet dynamics as well as an increased investment in infrastructure,” May added. “These factors are expected to support healthy demand for our equipment. At the same time, we have confidence in the smart industrial operating model and our ability to deliver solutions that help our customers be more profitable, productive, and sustainable.”

John Deere Construction & Forestry Industry Outlook 2023Deere & Company